Taxation of Chargeable Gains Act 1992 section 157

Trade carried on by personal company: business assets dealt with by individual

Section 157 extends roll-over relief on business assets to individuals who own qualifying assets used in a trade carried on by their personal company, rather than by the individual directly.

• An individual who disposes of qualifying business assets and acquires new ones can claim roll-over relief even though the trade using those assets is carried on by their personal company, not by the individual personally.
• A personal company is one in which the individual holds at least 5 per cent of the exercisable voting rights, and this ownership test must be met both at the time of disposal of the old assets and at the time of acquisition of the new assets.
• All the normal conditions for roll-over relief under sections 152 to 156 still apply — the only difference is that the trade need not be carried on by the asset owner directly, provided it is carried on by their personal company.
• The individual does not need to be a director or employee of the personal company to qualify, and relief is available even if the company pays rent to the individual for use of the asset.